MainStreet Bancshares (MNSB) AI Stock Analysis

• Market Cap: $159.70M
• Dividend Yield: 1.93%
• Average Volume (3M): 53.33K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.55
• Revenue Growth: 5.38%
• EPS Growth: -165.79%
• Country: US
• Employees: 182
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.25
• Shares Outstanding: 7,704,037
• 10 Day Avg. Volume: 114,241
• 30 Day Avg. Volume: 53,331
• PEG Ratio: 1.89
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.89
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $22.00 ▲(6.13%Upside)

MainStreet Bancshares' overall stock score reflects a mixed financial performance with profitability challenges but stable revenue growth and strong cash flow generation. Technical indicators suggest bullish momentum, though caution is advised due to overbought signals. Valuation remains a concern with a negative P/E ratio, while the earnings call presents a positive outlook with strategic focus on core operations and cost management.

MainStreet Bancshares Business Overview & Revenue Model

Company Description

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, remote deposit capture, and courier services. It also provides commercial loans, including government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company provides deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. As of March 18, 2022, it operated six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as 55,000 automated teller machines. MainStreet Bancshares, Inc. was incorporated in 2003 and is headquartered in Fairfax, Virginia.

How the Company Makes Money

MainStreet Bancshares makes money through various revenue streams primarily associated with its banking operations. The company earns interest income from loans extended to businesses and individuals, which forms a significant portion of its revenue. Additionally, MainStreet Bancshares generates non-interest income from service charges on deposit accounts, fees from cash management services, and other financial products. The company strategically partners with technology providers to offer innovative banking solutions, which can contribute to fee-based income. Interest rate fluctuations and economic conditions are key factors that influence the company's earnings.

MainStreet Bancshares Financial Statement Overview

Summary

MainStreet Bancshares faces profitability challenges with negative net income and margins, though revenue growth offers a positive outlook. The balance sheet is stable but shows some leverage risks, while cash flows indicate strong operational cash generation.

Income Statement

MainStreet Bancshares has seen a decline in its net income and EBIT performance in the TTM, with negative margins indicating operational challenges. However, revenue growth has been steady over the years, which provides a solid foundation for recovery if cost management improves. The gross profit margin remains positive, albeit lower than the historical average, suggesting some resilience in revenue generation despite profitability issues.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio that is stable but requires careful management. Return on Equity has turned negative in the latest period due to negative net income, which is a concern. The equity ratio remains healthy, indicating good asset coverage by equity. Overall, the balance sheet shows potential risks but retains stability.

Cash Flow

Cash flow from operations has been positive, indicating good cash generation despite net losses, with a positive free cash flow to net income ratio. However, declining free cash flow growth rates and high capital expenditures could pressure liquidity if not managed. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion from core operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.50M	137.87M	127.76M	88.68M	70.31M	69.52M
Gross Profit	59.73M	59.06M	78.44M	72.91M	60.82M	49.82M
EBITDA	-9.92M	-9.27M	35.57M	35.97M	30.32M	21.70M
Net Income	-10.83M	-9.98M	26.59M	26.67M	22.17M	15.72M
Balance Sheet
Total Assets	2.22B	2.23B	2.04B	1.93B	1.65B	1.64B
Cash, Cash Equivalents and Short-Term Investments	233.90M	48.92M	113.51M	111.56M	161.74M	223.35M
Total Debt	72.14M	73.04M	87.64M	172.25M	29.29M	14.83M
Total Liabilities	2.01B	2.02B	1.81B	1.73B	1.46B	1.48B
Stockholders Equity	209.62M	207.99M	221.52M	198.28M	188.79M	167.66M
Cash Flow
Free Cash Flow	8.35M	8.95M	25.63M	25.76M	24.82M	15.73M
Operating Cash Flow	12.55M	14.74M	31.63M	33.54M	29.12M	17.02M
Investing Cash Flow	-103.34M	-122.28M	-130.75M	-228.74M	-60.52M	-313.79M
Financing Cash Flow	168.69M	200.73M	83.03M	232.59M	-14.20M	339.45M

MainStreet Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNSB, the sentiment is Positive. The current price of 20.73 is above the 20-day moving average (MA) of 18.67, above the 50-day MA of 18.93, and above the 200-day MA of 17.69, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 78.10 is Negative, neither overbought nor oversold. The STOCH value of 99.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNSB.

MainStreet Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	73 Outperform	$125.74M	11.37	8.80%	3.11%	7.28%	-3.91%
AFBI	68 Neutral	$115.71M	20.31	4.84%	―	8.74%	-1.73%
RMBI	67 Neutral	$146.23M	15.95	6.82%	4.27%	13.55%	3.11%
Sector *	65 Neutral	kr119.25B	25.10	7.49%	4.20%	13.90%	-82.08%
MNSB	61 Neutral	$159.70M	14.43	-5.01%	1.93%	5.38%	-165.79%
RVSB	57 Neutral	$120.61M	24.70	3.11%	1.39%	9.61%	29.84%
ECBK		$144.53M	28.65	2.79%	―	―	―

MainStreet Bancshares Corporate Events

MainStreet Bancshares Reports Data Security Incident

On May 30, 2025, MainStreet Bancshares, Inc. reported a data security incident involving an outside vendor that was compromised in March 2025. The company determined that the breach affected personally identifiable information of about 4.65% of its customers but did not impact its own IT systems or financial operations. The incident has not had a material impact on the company’s operations or financial condition, and appropriate measures have been taken to notify affected customers and regulators.

MainStreet Bancshares Declares Quarterly Cash Dividend

MainStreet Bancshares held its Annual Meeting of Shareholders on May 21, 2025, where directors were elected for three-year terms, and the appointment of Yount, Hyde & Barbour, P.C. as the independent accounting firm for fiscal 2025 was ratified. Additionally, shareholders approved non-binding advisory votes on executive compensation but did not approve a proposal recommending the sale of the company. On May 23, 2025, the Board declared a quarterly cash dividend on its Series A Preferred Stock, payable on June 30, 2025, to shareholders of record as of June 13, 2025. The Depositary Shares are traded on the Nasdaq Capital Market under the symbol ‘MNSBP.’

MainStreet Bancshares Discusses Director Nominee Ali Reza Manouchehri

Mainstreet Bancshares Inc. addressed inquiries about Director nominee Ali Reza Manouchehri, CEO of MetroStar Systems, LLC, and MetroStar’s involvement with the Avenu platform. MetroStar, a digital IT services provider, partnered with Object Computing, Inc. to develop the Avenu platform, with plans to transition the solution in-house by June 30, 2023. MainStreet Bank has not engaged MetroStar since December 31, 2023, and Mr. Manouchehri, who joined the Board on February 21, 2024, has only received standard Board compensation. He brings extensive expertise in technology and innovation to the Board and has been a significant customer and lead provider for the bank.

MainStreet Bancshares Reports Q1 Net Income Growth

On April 21, 2025, MainStreet Bancshares reported a first quarter net income of $2.5 million, with a net interest margin increase to 3.30%. The company maintained strong asset quality and capital, with total deposits at $1.9 billion and a loan-to-deposit ratio of 96%. Nonperforming loans remained stable, and a successful resolution is expected to pay off $11.2 million in the second quarter. The company decided to halt its Avenu technology initiative to focus on core banking operations.

MainStreet Bancshares Announces Q1 Earnings Call April 21

MainStreet Bancshares, Inc. announced it will hold a virtual webcast and quarterly earnings conference call on April 21, 2025, to discuss first quarter results and recent activities. This event provides an opportunity for stakeholders to gain insights into the company’s performance and strategic direction.